Turkey Now the Fastest Growing Economy in the World
01 July 2011
Turkey is now the fastest growing economy in the world; its GDP growth of 11% year on year growth putting it well above the second fastest Argentina with 9.9% and China, now the third fastest with 9.7%.
One year ago, Turkey's first quarter GDP growth in 2010 was 11.7%, but this was put down the abysmal growth of Q1 2009 when Turkey was entering recession. The second quarter growth of 10.3% was equally down-talked for the same reason. However, now we are seeing this level of growth for the second year running it is harder for everyone not to be impressed, especially with Turkey now the fastest growing economy in the world, as well as Europe.
Turkish GDP grew 8.9% in 2010, but the consensus of predictions is that growth will slow to around 6% this year, including predictions from the EU and OECD. Analysts had predicted first quarter growth of 9.6% for Turkey, so now that it is running much higher than this, there are hopes that forecasts will be raised.
Meanwhile Turkey's biggest problem remains to be the sizeable trade and current account deficits. However, Turkstat also revealed that the manufacturing sector had led first quarter growth with 21.4% growth in output. Increasing manufacturing tends to lead to increasing exports, which is one thing badly needed in order to close those deficits.
This roaring economic growth will certainly do nothing to quell foreign lust for Turkish property, with sales to foreigners up 40% in 2010 according to the Association of Real Estate Investment Companies GYODER. GYODER also keeps a house price index, which currently shows Turkey property prices growing at around 6% per year.